Requirements for permission
1. No person, other than a substitute agent, may act as a managing agent or a members’ agent without the Council’s permission.
Underwriting Byelaw, paragraph 1
2. No managing agent may manage a syndicate without the Council’s permission.
Underwriting Byelaw, paragraph 2
3. No person may act as an approved run-off company without the Council’s permission.
Underwriting Byelaw, paragraph 3
Applications for permission
4. Any person that wishes to act as an underwriting agent or approved run-off company or manage a syndicate (an “applicant”) may apply to the Council for permission to do so.
Underwriting Byelaw, paragraph 4
5. Applications shall be made in accordance with such procedures and shall be accompanied by such documents and information as the Council may from time to time prescribe.
Underwriting Byelaw, paragraph 4
Grant of permission
6. The Council may –
(a) consider applications for permission to act as an underwriting agent or approved run-off company and grant or refuse any such application; and
(b) consider applications for permission to manage a syndicate and grant or refuse any such application.
Underwriting Byelaw, paragraph 6
7. Any permission granted under paragraph 6 may –
(a) be limited to permission to undertake only specified functions;
(b) be granted either for a specific period or for an indefinite period.
Underwriting Byelaw, paragraph 7
8. The Council shall not –
(a) grant permission to an applicant to act as an underwriting agent or to manage a syndicate unless the applicant complies with the Financial Services and Markets Act 2000 and the Prudential Regulation Authority’s requirements and Financial Conduct Authority’s requirements applicable to it;
(b) grant permission to an applicant to act as an underwriting agent or approved run-off company unless the applicant has demonstrated to the Council’s satisfaction that it is a suitable company to be permitted to act in that capacity. In deciding whether an applicant is suitable to be an underwriting agent the Council shall have regard to such criteria as it may from time to time prescribe;
(c) grant permission to an applicant to manage a syndicate unless the applicant has demonstrated to the Council’s satisfaction that it is a suitable company to be permitted to manage that syndicate. In deciding whether an applicant is suitable to manage a syndicate the Council shall have regard to such criteria as it may from time to time prescribe;
(d) grant permission to an individual or a partnership to act as an underwriting agent; or
(e) grant permission for a underwriting agent to act both as a managing agent and as a members’ agent.
Underwriting Byelaw, paragraph 8
Criteria for deciding whether an applicant is suitable to be granted permission to act as an underwriting agent
9. In deciding whether an applicant is suitable to be granted permission to act as an underwriting agent the Council shall assess each application on its own merits and in a manner consistent with the legal requirements that apply to the Lloyd’s new entrant process. In doing so, it shall have regard to the following criteria –
(a) whether the applicant is capable of operating in accordance with the Principles of Doing Business at Lloyd’s in line with maturity level appropriate for their business;
(b) whether the applicant is a competent, proficient and capable organisation. In considering this the Council may have regard to the following matters –
(i) the nature of the applicant’s business;
(ii) the fitness and propriety of the applicant’s directors, officers and key personnel;
(iii) the collective suitability of the applicant’s board of directors and of each of its committees;
(iv) the ability of the applicant to comply with Lloyd’s cultural requirements and targets including those relating to diversity;
(v) the ability of the applicant to comply with Lloyd’s requirements for sustainability;
(vi) the applicant’s capability and readiness to engage in and make changes required by Lloyd’s market transformation initiatives;
(c) whether the applicant’s proposed business adds value to the Lloyd’s market having regard to –
(i) the protection of the Central Fund;
(ii) the protection of confidence in the Lloyd’s market;
(iii) broadening or retaining the expertise or innovation offered in the Lloyd’s market;
(iv) increasing members’ access to new or emerging lines of business;
(v) broadening members’ access to business;
(vi) broadening members’ access to new policyholders;
(vii) broadening members’ access to new and emerging markets particularly through the use of Lloyd’s overseas underwriting arrangements; and
(viii) broadening members’ access to capital and capital providers.
(d) whether the applicant has a robust business plan that is capable of being achieved;
(e) whether the applicant has adequate capital and financial resources; and
(f) whether any person who controls the applicant or who is connected or associated with the applicant is of appropriate reputation and standing
Underwriting Byelaw, paragraph 9
Criteria for deciding whether an applicant is suitable to be granted permission to manage a syndicate
10. In deciding whether a managing agent is suitable to manage a syndicate the Council shall have regard to whether the managing agent has the resources and capabilities required to manage the syndicate together with any other syndicates under the management of the managing agent, such that the managing agent will continue to remain suitable to act as a managing agent (having regard to the criteria as set out in [9. above]).
The Council will assess each application on its own merits and in a manner consistent with the legal requirements that apply to the Lloyd’s new entrant process.
Underwriting Byelaw, paragraph 10
Register of underwriting agents and approved run-off companies
11. The Council shall maintain a register of all underwriting agents and approved run-off companies for the time being permitted to act under this Byelaw. The register shall be in such form and contain such information as the Council may from time to time determine.
Underwriting Byelaw, paragraph 11